Sri Lankan rupee is now the world’s worst performing currency
Sri Lanka's rupee has plummeted to a historic low, making it the world's poorest-performing currency, adding to the country's greatest economic crisis since independence in 1948.
Sri Lanka’s rupee has plunged to a record low to become the world’s worst-performing currency, as President Gotabaya Rajapaksa struggles to contain a worsening economic and political crisis, The Financial Times reported.
Last Monday, the 22-million-strong island nation's diesel supply ran out, causing a massive power outage.
Sri Lanka has been roiled by violent protests for the past week, as public outrage over the government's handling of the island's economic crisis has spilled into the streets. Much has happened since then.
According to critics, the foundation of the crisis, which is the worst in decades, is economic mismanagement by successive governments, which established and maintained a dual deficit—a budget deficit as well as a current account deficit.
Sri Lanka's foreign exchange reserves have plummeted by 70% in the last two years, to just $2.31 billion in February, leaving Sri Lanka unable to import basic necessities such as food and fuel.
(With inputs from agencies)